On June 25th, news reported that Hong Kong property stocks rose during trading, as of the time of writing, $NEW WORLD DEV (00017.HK)$increased over 6%, $HENDERSON LAND (00012.HK)$、 $KERRY PPT (00683.HK)$it rose nearly 4%, $SHK PPT (00016.HK)$Increased by nearly 3%.
On the news front, during the first day of a special congressional hearing on the Federal Reserve's monetary policy, Federal Reserve Chairman Powell did not comment on the possibility of interest rate cuts at the next Fed meeting in July. He reiterated the need to see more data to assess how high tariffs might affect inflation, noting that the Fed has paused interest rate cuts due to expectations that tariffs would increase inflation. However, he did not rule out the possibility that the impact of tariffs on inflation might not be as significant as expected and did not exclude the possibility of a premature rate cut.
Bank of America Securities' Research Reports indicated an adjustment in the Target Price for Hong Kong real estate stocks, with an average increase of 12%. The bank noted a sharp decline in the Hong Kong Interbank Offered Rate (HIBOR), which effectively amounts to a rate cut, triggering a round of valuation recovery in the Hong Kong real estate industry. However, the bank believes that the improvement in fundamentals may not be sufficient to change the direction of Asset prices (Bank of America has not made significant changes to its forecasts for the physical real estate market). The report stated that as most Hong Kong real estate stocks' prices approach the peaks of September 2024, the HKD/USD Trade nears the lower end of the volatility range (which may lead to a rebound in HIBOR), new catalysts are needed to maintain outperforming performance.
Editor/melody
